Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Performance

Consolidated results for the cumulative third quarter period of the fiscal year ending March 2026 showed net sales of JPY 142.309 billion, down 7.8% Year-over-Year, due to decreased sales volume amid weaker demand. Efforts to improve selling prices were offset by increased costs from rising electricity and material prices, resulting in operating income of JPY 7.855 billion, down 15.6% YoY; ordinary income declined 16.5% to JPY 9.116 billion; and net income attributable to owners of parent for the quarter decreased 17.5% to JPY 6.548 billion. By segment, the Steel Business had net sales of JPY 130.578 billion, down JPY 12.716 billion YoY, with ordinary income decreasing by JPY 8.779 billion to profit. The Agricultural Materials Business reported net sales of JPY 8.216 billion, up JPY 446 million YoY, but recorded an ordinary loss of JPY 65 million compared to the previous year.

Financial Condition and Dividends

Total assets increased to JPY 264.607 billion at the end of the period, driven by an increase in notes and accounts receivable and investment securities, compared with the end of the previous consolidated fiscal year. Liabilities also increased, while net assets rose by JPY 5.916 billion due to net income attributable to owners of parent recorded for the quarter and dividend payments, improving the equity ratio from 52.8% to 53.0%. The annual dividend forecast was revised downward from 240 JPY in the previous term to 180 JPY. Earnings guidance for the full fiscal year ending March 2026 anticipates net sales of JPY 195.0 billion (down 5.0% YoY), operating income of JPY 10.5 billion (down 23.6% YoY), and net income attributable to owners of parent of JPY 8.5 billion (down 24.9% YoY).